Automotive PCB specialist Chin-Poon Industrial remains conservative about its performance in 2020, due to the coronavirus impact on the car market.
Whether recovery will take place in the global automobile market this year will very much depend on developments in the coronavirus pandemic, according to Chin-Poon, which has over 70% of revenues generated from the auto sector.
Car vendors in Europe and the US have been hit by the outbreak, said Chin-Poon, adding that the PCB firm will suffer from a slowdown in customer orders in the short term.
Global car sales are forecast to register flat growth or a slight decrease in 2020, but the coronavirus pandemic could worsen the outlook, Chin-Poon indicated. If the outbreak fails to ease by the second half of this year, the impact on the automobile market would be significant, the PCB maker said.
Despite unfavorable market conditions, Chin-Poon said it is confident it will go through tough times with its well-built financial structure.
Chin-Poon reported net profits of NT$660.8 million (US$21.8 million) on revenues of NT$17.85 billion for 2019, with gross margin and operating margin reaching 7.81% and 1.67%, respectively.
Article translated by Jessie Shen
